Oxnard budget outlook stable as economy begins to improve

Perhaps signaling the worst of the downturn has passed, Oxnard officials said the city's midyear review is unlike the past three budget cycles because it does not show a need for multimillion dollar cuts.

"It appears that things are getting better," Finance Director Jim Cameron said, as he looked through the city's revenues.

At this time last year, Cameron and city officials were scrambling to fill a projected $5 million revenue gap. They bridged the shortfall largely through an early retirement program for eligible city employees. The previous year the gap between projected revenues and real revenues at midyear was nearly $10 million.

"It's much harder budgeting in bad times," said Cameron.

This year, a relatively stable stream of sales tax revenue and income from other taxes and fees has helped the city stay within its budget. It's not all good. Sales and property taxes are down from the previous year, about $2.3 million and $2.2 million, respectively.

Still, there isn't really a gap this year. The city projects that it will have revenues of about $108.5 million for its general fund, which covers police, fire and basic city services. Police and fire services take up the largest portion, about $65 million. General fund spending is now at about the same level it was four years ago and far down from 2009, when it was nearly $120 million.

At a City Council meeting Tuesday night, Mayor Tom Holden said cuts over the past three years totaling more than $15 million and cost controls have helped keep the budget in line.

"We're where we want to be today because of those reductions," Holden said when asked about city spending.

Resident Bert Perrelo raised the question to get at why there was so much emphasis on revenue in the budget documents and not a lot of discussion about spending.

Holden noted that the midyear check is to assess whether the predictions and estimates made in the budget last summer are in line with reality. In some ways, the budget is at the mercy of things beyond the city's control. Revenue from taxes are tied to the economy, such as consumer spending.

"Revenues we cannot control, expenditures we can," Holden said.

The news on the economy is that it appears to be recovering, albeit slowly, Cameron said.

While home prices in Oxnard continue to decline with the median sales price at about $277,000 and unemployment still relatively high at about 14.4 percent, other economic indicators for the city and county appear to be up, Cameron said.

Oxnard's total budget is about $361 million, including the $108 million general fund; $102 million in enterprise funds — financed through fees for services such as trash and water; $57 million in special revenue funds; $35 million in debt services payments; and $58 million in other spending.

In addition, the revenue total doesn't include money generated by Measure O, the voter-approved half-cent sales tax to improve parks, after-school programs, roads and senior services, among other things. It is estimated the measure will bring in $10 million this year.